SUPPLY CHAIN AND

TRANSPORT
MANAGEMENT
WHAT IS SUPPLY CHAIN MANAGEMENT
THE SUPPLY CHAIN ENCOMPASSES ALL OF THOSE ACTIVITIES
ASSOCIATED WITHMOVING GOODS FROM THE RAW-MATERIALS
STAGE THROUGH TO THE END USER

SUPPLY-CHAIN MANAGEMENT : "THE DELIVERY OF ENHANCED

CUSTOMER AND ECONOMIC VALUE THROUGH SYNCHRONISED
MANAGEMENT OF THE FLOW OF PHYSICAL GOODS AND
ASSOCIATED INFORMATION FROM SOURCING TO CONSUMPTION. "
WITHIN THE ORGANISATION, THE SUPPLY CHAIN REFERS TO A WIDE
RANGE OF FUNCTIONAL AREAS. THESE INCLUDE SUPPLY CHAIN
MANAGEMENT-RELATED ACTIVITIES SUCH AS INBOUND AND
OUTBOUND TRANSPORTATION, WAREHOUSING, AND INVENTORY
CONTROL. SOURCING, PROCUREMENT, AND SUPPLY MANAGEMENT
FALL UNDER THE SUPPLY-CHAIN UMBRELLA, TOO. FORECASTING,
PRODUCTION PLANNING AND SCHEDULING, ORDER PROCESSING,
AND CUSTOMER SERVICE ALL ARE PART OF THE PROCESS AS
WELL.IMPORTANTLY, IT ALSO EMBODIES THE INFORMATION
SYSTEMS SO NECESSARY TO MONITOR ALL OF THESE
ACTIVITIES.
 IMPORTANCE OF SUPPLY CHAIN
MANAGEMENT

SUPPLY CHAIN MANAGEMENT HAS AN IMPORTANT ROLE TO

PLAY IN MOVING GOODS MORE QUICKLY TO THEIR
DESTINATION
IT'S ABOUT TIME- SUPPLY-CHAIN MANAGEMENT AND TIME-
BASED LOGISTICS TOGETHER CAN GIVE COMPANIES
AN UNBEATABLE OPPORTUNITY TO INCREASE PROFITS ( IN OUR
TERMS TIME BOUND COMPLETION)
 SUPPLY CHAIN MANAGEMENT TODAY

SUPPLY CHAIN MANAGEMENT DEPARTMENT FUNCTIONS:

INVENTORY MANAGEMENT
TRANSPORTATION SERVICE PROCUREMENT
MATERIALS HANDLING
INBOUND TRANSPORTATION
TRANSPORTATION OPERATIONS MANAGEMENT
WAREHOUSING MANAGEMENT
THE SUPPLY CHAIN MANAGEMENT PIPELINE

THE FREIGHT TRANSPORTATION

THE MOTOR CARRIER
CUSTOMERS NEEDS
DOCK MANAGEMENT SYSTEMS
YARD MANAGEMENT SYSTEMS
 ROLE OF IT
Consistent application of appropriate information technology
throughout the supply chain arrnagement pipeline results in
shortened cycle times and lowered effort. immediate, reliable
information allows managers to optimise their physical and
human resources. while maximum benefit comes to those carriers
who implement a consistent information strategy throughout their
operations, segmentation of the problem allows carriers to phase
in their transformation. each phase provides immediate economic
benefits, while improving the strategic position of the carrier.
 OBJECTIVES OF SUPPLY CHAIN MANAGEMENT

ADD VALUE
REDUCING WORKING CAPITAL.
TAKING ASSETS OFF THE BALANCE SHEET.
ACCELERATING CASH-TO-CASH CYCLES
INCREASING INVENTORY TURNS, AND SO ON.
 SUPPLY-CHAIN PRINCIPLES

Segment customers based on service needs.

Customise the Supply Chain Management network.
Listen to signals of market demand and plan accordingly.
Differentiate product closer to the customer.
Strategically manage the sources of supply.
Develop a supply-chain-wide technology strategy.
Adopt channel-spanning performance measures.
A FOUR STEP INTEGRATED APPROACH

Potential analysis
Concept study
Detailed planning
Project or change management
 EXPECTED RESULTS / BENEFITS

Where the Supply Chain Creates Value:

Enhanced revenues, tighter cost control, more effective asset
utilisation, and better customer service are just the beginning
* Profitable growth.
* Working-capital reductions
* Fixed-capital efficiency.
* Tax minimisation.
* Cost minimisation.
 OPPORTUNITY AREAS

1. Distribution network optimisation.

2. Shipment consolidation.
3. Cross docking.
4. Supplier management.
5. Supplier integration.
Given the extensive time, effort, and commitment of resources involved, is
design and execution of a comprehensive supply-chain strategy really worth it
all?
HOW CAN SUPPLY CHAIN MANAGEMENT (SCM) BE
APPLIED TO AN ORGANISATION

The most important thing is to first understand the customer's

true needs.
Once the correct information is in hand, organisation can design
their supply-chain processes to provide what the customer really
needs.
 TYPES OF FIRMS /ORGANISATIONS SUPPLY
CHAIN MANAGEMENT CAN BE APPLIED

Supply Chain Management could by implemented to all firms

(manufacturing firms,retailers, services, etc.) and public
organisations.
Minimum Number of employees: 20 (at least 4 in management
positions).
Strong management commitment to new ways of working and
innovation.
 IMPLEMENTATION PROCEDURE

Designing the long-term supply-chain structure to position the company

in the right roles in the right supply chains with the right customers and
suppliers.

Re-engineering supply-chain processes to streamline product,

information, and funds flow internally and externally.

Reinforcing the supply chain's functional foundation by improving

quality and productivity within operational areas such as warehousing,
transportation, and fleet
management.
 THE FIVE KEY DIMENSIONS

1. STRATEGY--specifically, the alignment of supply chain

strategies with the overall
business direction. Key decision points for managers here include:
What is required to align the supply chain with the business
strategy?
What level of customer service must we provide to each customer
segment to
compete effectively?
Which channels of distribution best meet our goals and our
customers' needs?
3. PROCESS--the drive to achieve functional excellence and
integration across all major
processes. Managers must ask themselves the following:
What are the core supply chain processes driving the business?
How can we adapt best-in-class approaches to our core processes (e.g.,
manufacturing, integrated demand planning, procurement, cycle-time
compression, dynamic deployment)?
How can we build linkages with our suppliers and customers?
2. INFRASTRUCTURE, which affects cost-service performance
and establishes the boundaries
within which the supply chain must operate. Pertinent questions
include:
How must the physical network of plants and distribution be
structured?
Can we rationalise our current network?
Can we use contract manufacturing or third-party logistics
capabilities?
What transportation services can best link together the network
of facilities?
Which activities should we outsource?
4. ORGANISATION--providing the critical success factors of
cohesion, harmony, andintegration across organisation entities.
Questions to consider include:
What level of cross-functional integration is required to manage
core processes effectively?
How can we leverage cross-company skills and abilities?
What performance-measurement and reporting structure can
help us achieve our objectives?
5. Technology, which empowers the supply chain to operate on a new level of
performance and is creating clear competitive advantages for those companies
able to harness it. Companies should address the following points:
Do our IT platform and core applications software support world-class SCM?
Where will advanced decision-support capabilities have the greatest impact on
business performance?
What data are required to manage the core business processes outlined above?
How can we capitalise on advanced communications (e.g., intranets and the
Internet) in managing the supply chain?
How can we leverage enhanced visibility of customer demand and other key
operating parameters?